DineEquity Inc. posted a 29% increase in profit as the restaurant operator's IHOP chain continued to grow, though it lowered its guidance for its Applebee's chain on lower sales there.

Domestic systemwide same-restaurant sales increased 5.8% at IHOP. At Applebee's, comparable sales were down 0.5%.

The company said it now expects fiscal 2015 Applebee's sales to be flat to up 1%, down from previous expectations of 1% to 3% growth. But DineEquity also boosted new-restaurant development at the chain to a range of 35 to 45 restaurants, most of which are expected to open in the U.S. Its previous estimate was 30 to 40 new restaurants. Chief Executive Julia Stewart said in a news release Thursday that new-restaurant development continues at a healthy pace.

Overall, DineEquity posted a profit of $23.9 million, or $1.28 a share, up from $18.6 million, or 99 cents a share, a year ago. Excluding special charges and other items, adjusted per-share earnings increased to $1.43 from $1.14 a year earlier.

Revenue edged down 0.3% to $162.4 million.

Analysts polled by Thomson Reuters had forecast earnings of $1.43 a share on revenue of $165 million.

DineEquity has sold nearly all of its company-owned restaurants to franchises as a way to generate more consistent revenue and insulate itself from the volatility of commodity costs and consumer spending—a strategy restaurant companies such as Wendy's Co. also are employing.

Shares were inactive premarket.

Write to Anne Steele at Anne.Steele@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 29, 2015 10:05 ET (14:05 GMT)